Michael Page Human Resources & Legal Road Ahead Presentation

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In February 2014, the Michael Page Human Resources and Legal teams delivered a presentation to clients which included insights on the economy, current industry trends, salaries and the evolving labour market.

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<ul><li> 1. FEBRUARY 2014 PRESENTED BY JOHN MACLEAN </li></ul> <p> 2. AGENDA PageGroup Overview Areas of Specialisation The Decade in Review What Did We See in 2013? Current Industry Trends Salary &amp; Employment Forecast 2014 Has the Recruitment Landscape Changed? Summary 3. PAGEGROUP OVERVIEW GLOBAL COVERAGE 4. AREAS OF SPECIALISATION HUMAN RESOURCES HR Director / Head of HR HR Business Partners / Manager HR Advisors Learning &amp; Development Specialists Remuneration &amp; Benefits Specialists Talent Acquisition / Recruitment Specialists HRIS Specialists Change Management Specialists LEGAL Partners Senior Associates / Associates General Counsels Legal Counsel / Senior Legal Counsel Compliance Specialists 5. THE DECADE IN REVIEW THE AUSTRALIAN ECONOMY Annual GDP Growth 6. THE AUSTRALIAN ECONOMY WHAT CAN WE EXPECT IN 2014 ABS recorded unemployment as being 5.8% in December 2013 (20 year average is 6.3%). The Australian economy is expected to grow by 2.5% in 2014. We will see transition from resource investment led growth towards broader based growth. The outlook for the global economy is stronger than it has been in 2013. This indicates a stronger job market in 2014. 7. THE DECADE IN REVIEW ANNUAL EMPLOYMENT GROWTH NSW &amp; Australia (2004-2013) 8. THE DECADE IN REVIEW ANNUAL EMPLOYMENT GROWTH VIC &amp; Australia (2004-2013) 9. WHAT DID WE SEE IN 2013? Overall, similar trends to 2012. Subdued domestic market influenced by mixed global economic conditions: China continued to slow slightly The US continued to grow at a moderate pace The Euro area largely remains in recession. Slowdown in mining had a negative impact on the economy and signalled caution to other sectors this appears to have stabilised. Early announcement of the federal election halted business decisions. Consumers and businesses werent prepared to ramp up their spending. The promise of post-election movement is still yet to be fully realised. The collective effect was a relatively flat employment market. 10. IS THE CURRENT MARKET THE NEW NORMAL? There are no forecasts for a large spike in the market. Businesses are generally positive about the outlook for 2014. This is yet to translate into large movements in business or employment activity. Companies are continuing to be bottom-line focused. Increase in restructures within management teams. With more political stability and a stronger global economy it is expected that people will spend more and businesses will lift hiring and investment. There is a level of comfort that the economy wont decline and most people are cautiously optimistic. 11. INDUSTRY TRENDS Companies expect hiring to remain fairly stable over the next 12 months. Businesses are closely monitoring the costs associated with their support services functions. Continued steady requirement for HR professionals on a temporary basis offering a flexible workforce. IT / Telecommunication and Public Sector all showed a significant requirement for additional headcount. SMEs are more willing to actively invest in HR compared to large businesses that have the option to offshore back office functions. COMPANIES 12. INDUSTRY TRENDS Candidates are seeking a strong company culture. The opportunity to learn and broaden experience is a key reason to move roles. Work life balance initiatives are a strong motivator with the average working week being 37.5 40 hours and less that 1% working more than 51 hours. More flexible working arrangements are being sought at the senior end of the market with the option to work one day a week from home. Candidates are often passively looking for the right opportunity rather than being motivated purely by financial rewards. The senior end of the candidate market has been very stagnant. CANDIDATES 13. INDUSTRY TRENDS Occupational Health &amp; Safety (OH&amp;S) specialists are currently in high demand particularly across SMEs. A high number of HR job opportunities have been available in the digital area, which is rapidly expanding in line with changing consumer preferences and the growing popularity of online shopping. HR Generalists, particularly HR Business Partners, continue to be a focus for hiring activity. Strong trend towards technical competence and business know how. Business conditions have driven a demand for specialist skill sets including employee relations, HRIS and change management. Companies are continually looking for professionals willing to consider interim options with a view to permanency. POSITIONS IN DEMAND HUMAN RESOURCES 14. INDUSTRY TRENDS CANDIDATE DEMAND LEGAL PRIVATE PRACTICE There has been an unprecedented demand / appetite for Partners to move firms. Most other external hiring has been at a junior level (2 4 years). There continues to be a candidate shortage across all practice areas. IN-HOUSE The General Counsel / senior market has been extremely stagnant. The majority of roles have been at junior counsel level. Private Practice lawyers will leave for fixed term roles. 15. SALARY &amp; EMPLOYMENT FORECAST 2014 SALARY &amp; REMUNERATION 16. SALARY &amp; EMPLOYMENT FORECAST 2014 RECRUITMENT ACTIVITY 17. SALARY &amp; EMPLOYMENT FORECAST 2014 ATTRACTION &amp; RETENTION 18. SALARY &amp; EMPLOYMENT FORECAST 2014 ATTRACTION &amp; RETENTION 19. HAS THE RECRUITMENT LANDSCAPE CHANGED? In larger corporate structures, companies are continuing to de-layer THE EFFECT OF STRUCTURAL EFFICIENCIES Traditional Structure 20. HAS THE RECRUITMENT LANDSCAPE CHANGED? In larger corporate structures, companies are continuing to de-layer THE EFFECT OF STRUCTURAL EFFICIENCIES Efficient Structure 21. HAS THE RECRUITMENT LANDSCAPE CHANGED? Employees can see lack of career progression, causing staff turnover. Companies are short-term focused in their replacement strategy. This is in line with a shorter term goal focus / cost focus in a challenging economy. Candidates become more specialised less breadth of skills/industry knowledge. Creation of perpetual job recruitment rather than career development. Often outside the control of staff retention strategies if the next step isnt realistically available. THE EFFECT OF STRUCTURAL EFFICIENCIES 22. HAS THE RECRUITMENT LANDSCAPE CHANGED? THE EFFECT OF STRUCTURAL EFFICIENCIES 23. HAS THE RECRUITMENT LANDSCAPE CHANGED? MANAGING THE CANDIDATE MARKET Networking Search Print Advertising Online Advertising Job Boards Social Media (Facebook, Twitter, LinkedIn) Database PreviousSourcing Strategies Current 24. HAS THE RECRUITMENT LANDSCAPE CHANGED? Access to candidates is now far easier Job boards provide an untargeted approach Aggressive LinkedIn campaigns can have a detrimental effect Greater sophistication is essential in effective candidate management MANAGING THE CANDIDATE MARKET The difference between passive and active candidates is evaporating Active Passive 25. SUMMARY The employment market proved to be steady throughout 2013. Should we accept the current market as the new normal? The outlook for 2014 continues to be cautious with some level of optimism. Companies continue to be bottom line focused. There are longer term effects of efficiency restructures. With greater access to a broad candidate pool, correct candidate management is crucial for an efficient recruitment process and company EVP. </p>